Rs 3.35 lakh crore for states in 20-30 years from coal auctions, says Coal Secretary

Auction of coal blocks would generate a fund flow to the tune of Rs 3.35 lakh crores to the states, provided allotment remained transparent and the states ensured that all clearances were in place, Union Coal Secretary Anil Swarup said on Thursday.

Speaking at the inaugural session of the two-day power ministers’ conference, Swarup said that states would have to ensure a lot of clearances and leases as the Centre had already done, at the same time also create the infrastructure to evacuate more coal from the respective blocks.

“It will be a windfall for the states. But clearances must be expedited to get the share of this Rs 3.35 lakh crores,” he said.

Swarup also said that the country would be producing 1.5 billion metric tons of coal by 2020. Of this Coal India Ltd alone would be producing one billion tons, while the remaining 0.5 billion tons would come from the non-CIL sector, he informed.

He said initially the Supreme Court judgment on the allocation of coal blocks was thought to create big problems. But the government acted swiftly and took the opportunity, passed an ordinance to put in place an extremely transparent mechanism where bidders and the public as well could see and track the auction process,” Swarup said.

“Not a single penny from the 42 initial blocks and the 32 blocks that were auctioned under Schedule 3 has gone to the government of India. Instead the entire money is going to the state governments. This has created huge opportunities for the state governments,” he said.

Source:: Indian Express